Data centres not yet on tap in northern Sask

“I think it’s a great opportunity for investment in this province and not only Saskatchewan, but the benefit of Canada. I think it’s something that we need,” said Bill Huber, president of Saskatchewan Association of Rural Municipalities (SARM).

“You know, AI is coming whether we like it or not. And if we have these things in Canada, I think it’s a lot better fit than having them somewhere else, possibly in the U.S. or even maybe some other country abroad.”

Randy Goulden, Huber’s counterpart with the Saskatchewan Urban Municipalities Association (SUMA), said she supports the new guidelines because they solve some problems before they start.

“We support the framework that they’ve developed because it provides clarity for our municipality about the future of data centers in our Saskatchewan communities,” she said.

Goulden said SUMA also pushed for open and transparent communication about applicants and applications, saying residents and businesses need clear answers about issues such as water use, power supply, light pollution and land use.

The decision on whether a development permit will be granted remains that of the municipality.

Reeve Ray Orb of the RM of Sherwood was the head of SARM for years and says that the biggest benefit to the municipality is the volume of tax revenue that is expected.

“The biggest thing is taxation. I just threw out the number, if its $1 million, well man, that quarter-section probably took in about $1,000 in agricultural tax, with the municipal and school tax combined.”

Orb’s numbers are estimates because the data centre is still under construction and has been assessed yet.

He also said that the additional jobs will be welcomed and pointed out that Bell also upgraded the nearby road and paved it.

A nearby landowners group had concerns about potential noise pollution but Bell is now building a berm around the entire facility that will likely be as high as the buildings to address that issue.

Orb said he has looked at the new provincial guidelines and believes they address the main concerns Sherwood residents expressed.

A requirement placed on the development permit means sound emissions are capped at 72 decibels.

Huber said SARM does not have a guide or formal process for rural municipalities considering data centre applications, but urges councils to understand the full impact, benefits and potential concerns before deciding whether to approve a development.

Included in the Saskatchewan guidelines are requirements that the company be Canadian owned, support Canadian data and AI sovereignty, create jobs provincially, supply their own power and have a closed-loop water system (needed for cooling).

The largest data centre in Canada is currently under construction in the RM of Sherwood near Regina.

Bell, which is building the centre, said in documentation posted to its website that they expect the project to generate $12 billion in long-term economic value to Saskatchewan because it will create 80 permanent jobs, along with the ones created by construction, and contribute to provincial and municipal tax revenue.

How much local tax would be generated is still unknown as the centre isn’t done yet and numbers vary depending on how the municipality sets their mill rates or classifies the development.

The province of Saskatchewan said it estimates it will receive about $720 million in tax revenue and they have about 30 applications for data centres development in the queue.

The Johnson Shoyoma Graduate School of Public Policy, an arm of the University of Regina and University of Saskatchewan, released a policy paper in June on the topic of data centres, analyzing the promises made by proponents and the likely reality.

They agreed with Bell’s assessment that 80 permanent jobs would be created but had doubts about another promised 750 spin-off jobs.

“Even taken at face value, this level of employment is modest relative to the scale of public resources the project would consume. If employment is a primary objective, other forms of economic development are considerably more labour-intensive per dollar invested,” wrote authors Justin Longo and Margo Hurlbert.

Where the 30 applications are for, was not released by the province, but reeves for the RMs of Prince Albert and Buckland say neither has received an application. Prince Albert’s mayor also said several weeks ago they have not received any applications.

RM of Buckland Reeve Linda Clavelle said she has very limited knowledge of data centres since it hasn’t come before their council yet, but did have a different concern when it comes to how much land is needed.

“You know, it seems to me it’s a waste of good farmland to do that and then if you’re not going to use farmland, then you have to use forest or marginal land…and the marginal land doesn’t have a lot of water on it.”

The Bell site near Regina will take almost 160 acres of land.

Impact to the grid

While new developments will have to supply their own power, the Bell site will use 300 megawatts of continuous baseload power that will be pulled from the existing SaskPower grid. SaskPower’s total generating capacity is about 5,900 megawatts and they have an average demand of 2,600 to 3,500 megawatts, depending on the season.

Longo and Hurlbert compared the needed wattage for the Bell centre to that of the BHP Jansen potash mine, one of the biggest industrial developments in Saskatchewan’s history.

In March of this year, Minister Jeremy Harrison said the Bell data centre would hinge on the refurbishment of the Boundary Dam re-firing units 4 and 5, which are powered by coal.

Those two units would almost supply the Bell centre with the 300 megawatts needed. The company is adding a 300 megawatt backup generator that uses natural gas.

There is also an allowance in their site plan for a future gas plant or a renewable energy system, with an unspecified source.

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susan.mcneil@pattisonmedia.com

by Susan McNeil

Data centres not yet on tap in northern Sask

Impact to the grid

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